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Michael Noonan Edge Trader Plus Michael Noonan is the driving force behind Edge Trader Plus. He has been in the futures business for 30 years, functioning primarily in an individual capacity. He was the research analyst for the largest investment banker in the South, at one time, and he... More
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  • Gold And Silver - Knowledge Is Of No Value. Using It Is. 0 comments
    Jul 13, 2013 12:45 PM

    Saturday 13 July 2013

    Do markets send messages? Absolutely, and they are there for anyone and everyone to see as they develop. Most people like to read news
    about increased demand for gold and silver, record purchases for silver eagles, etc, etc, etc. The headlines over the past several months
    have teemed with such information, raising expectations, but not
    raising the price either of gold or silver.

    More recently, there is "news" about market bottoms, eminent
    turnarounds, a renewal of where gold and silver can reach, [once the
    central bankers deplete their gold stocks; once the COMEX fails, and
    more etcs]. Seems like not as many are paying attention to the most reliable and obvious source of all, the market price itself.

    But it's manipulated and irrelevant. Manipulated? Without question.
    Irrelevant? Not so sure. If the price of gold and silver, as quoted on
    the New York and London exchanges is so irrelevant, then why is it still so widely used, and why is the rest of the world going along with the
    exchange pricing mechanism? Minds are being more manipulated than
    the markets.

    For a while, premiums shot up, but the actual price for the physical did not, at least not for daily buyers that are non-sovereign countries.
    We do not think physical demand is the issue. The man/woman on the street of any country in the world is buying whatever they can afford.
    As price declines, people buy more.

    China, Russia, India, and others, as countries, are taking whatever
    is available, so demand from sovereign sources have all their trucks
    backed up to the loading docks of whatever Western central bank[s]
    is selling. These buyers are more than happy to see price decline.

    The supply issue is two-fold. One is the paper market, which
    apparently still has a lot of longs remaining: gold funds, primarily. The
    other issue is the central bankers themselves. They have more political power to use than many think otherwise. Yes, the vaults may be near depleted, and yes, they cannot make good on any deliveries, but who
    is going to force them to cry "Uncle?" They also control the money
    supply, and if anyone wants to play hardball with them, they will play
    harder and dirtier ball back. Too many continue to underestimate they staying power, no matter how weakly perceived they are.

    All we know is that almost all of the precious metals experts and
    newsletters/videos, etc, have been wrong for the past nearly two
    years. Gold is not at $5,000 or $10,000, not even $2,000. The same
    for silver, as it shocked so many when it went back to $18.

    Buying gold and silver is like buying a house. Everyone needs a roof
    over their heads. The price of housing has dropped considerably since
    the housing bubble burst. Did everyone sell their house because its
    value dropped? Absolutely not. One still needs a place to live.
    Precious metals are a form of, let us call it "wealth protection," without
    getting into semantics, where one needs to store value. Gold has a
    history of proven value over centuries. Paper fiat has a proven failure
    for over centuries, as well.

    Which would you rather own?

    Have the precious metals decline gone down farther and last longer
    than most expected? Yes, and yes. Will both gold and silver go back
    up in value? Without question. So why be concerned where the
    current price levels are? It is the last bargain of a lifetime, maybe
    even for generations. Can the price of both still go lower? Based on the charts, yes. Will they? Possibly, but that remains to be seen.

    The New World Order, [NWO], is alive and well. It is actively exerting
    control over smaller European countries, and dictating policy for the
    entire region. The NWO has been operating under the radar in the
    bankrupt United States since 1933, so Americans remain willingly
    oblivious to its stealth forces and continue to believe they live in the
    "Land of the Free," despite the Stasi-like conditions.

    The point of mentioning the NWO is to let everyone know that it is
    their intent to enslave the world. How do they do that? By destroying wealth. Prior to the Roosevelt 1933 gold confiscation scam, Americans used to own gold and silver. It was a form of wealth, and as long as
    they had it, they were not dependent upon the government. Hence,
    the "turn in your gold [wealth], so we can control you and make you
    dependent upon the government for your existence." It is no accident that people are dependent upon Social Security, and more households
    than ever receive food stamps. Destroy wealth; create dependency.

    Fewer living Americans have ever held a gold coin, let alone own one.
    Americans live on debt, in the form of fiat and credit cards. They are
    NWO slaves, just without realizing it.

    The other form of wealth? Housing. Back in the 1920s and 1930s, few Americans owned a house. Property owners were farmers. The NWO-
    manufactured Great Depression saw countless farmers lose their farms
    to the banks. What did most Americans just go through over the past
    few years? A massive dislocation of their homes through foreclosure
    by banks submitting fraudulent complaints and improper assignments.

    Of course, this was after bankers created the ability for anyone who
    could fog a mirror to buy a house. It was planned that way. Who are
    now the biggest property owners in the country? Banks. Those who
    lost their property lost their last form of wealth, and now they, too,
    are dependent upon the NWO government.

    So, if you are worried about the [forced] decline in the "value" of gold
    and silver, would you rather hold worthless fiat and credit card
    "wealth?" Everyone is free to choose. Well, fewer and fewer people
    are actually free, except in their captive minds.

    Buy gold, buy silver, and hold it yourself. If you do not hold it, you do
    not own it.
    Period. If you hold gold and/or silver in paper form, that is what you own...paper. Everyone is free to choose.

    Even an atheist should have little trouble keeping the faith in gold and
    silver, given the highly unreliable alternatives. What about the backing of the "full [misplaced] faith and credit [maxed out several times over]
    of the government? Ask the city/county pensioners from Detroit or
    Camden how that is working out? They may not see even a dime of
    what was "promised" to them.

    The charts continue to defy the expectations for higher PM prices, at
    least for now. They are fully reflective of the actual existing price
    until proven otherwise:

    We show why the odds favor a rally from here, which can still fail to
    materialize for as long as the "money changers" remain in control. It is too soon to know if PMs have actually bottomed, but they may be in
    an early bottoming process. Bottoms can be short-lived, or they can
    take months/years. The market will keep you informed as to which.
    Maybe not a satisfying answer, but one that deals with reality.

    GCA M 12 Jul 13

    The weekly chart gives more detail on why a bottom, of some degree,
    may be forming. What makes it difficult to be more definitive is the
    control central planners still have over the markets, and they want
    price suppressed, or they lose control, and not just of price.

    GCA W 12 Jul 13

    You can't get tomorrow's news today, but you can get market
    guidance today from future day-by-day activity depicted on a chart.
    Can you see the value in that? More can "see" "value" in gold and
    silver than can see the value of following developing market activity.
    Belief in expectations is far more compelling than believe in reality,
    which is all a chart is.

    What follows is chart detail, but it captures the current character of
    the market, which is how the future price will develop, according to
    the clues in price and volume. In the box, note how price declined
    with such Ease of Downward Movement, [EDM], on the higher volume
    bar, left side, call it bar 1. The next 3 bars show a weak rally effort.

    Weak rallies lead to lower prices, and lower prices followed, in bars 5,
    6, and 7. However, there is a distinct change in character. Volume
    increased on these low bars, and the last of these bars produced a
    rally on relatively high volume. This is a red flag, a warning for the
    bears. Buying has become clearly evident for the first time while the
    rate of descent down from one swing low to the next also shortened.

    The 4th bar in July was on increased volume to the downside, but
    price held above the effort from buyers at the end of June. While
    gold has rallied back to 1300, note how small the bars are, a more labored rally, and the location of the closes for each. None of the
    closes are particularly strong, a lack of demand.

    The rally of last Thursday had the highest up volume, but the close
    was mid-range, a draw between buyers and sellers, saying sellers were present at a resistance area. Friday's lower close was on less volume
    and a smaller, inside day bar. It could be that sellers failed to take
    advantage and that leaves the door open for another opportunity to
    challenge a minor resistance level.

    If gold cannot rally above the minor resistance level, price will turn
    lower and either retest the end of June low, or make a lower low. The how of any rally or decline will tell us what to expect.

    GCQ D 12 Jul 13

    What we have yet to see in either gold or silver is a change in trend.
    Price will continue to work lower, or move sideways until demand
    shows up, and it has not, contrary to the demand for the physical
    reported in the news and newsletters. That same unprecedented
    demand is not showing up in the charts, for a reason, whatever it
    may be.

    SIA W 13 Jul 13

    As with the daily gold chart, the highest volume occurred at the
    recent lows, and the volume increase is always dominated by smart
    money. The rally, since the high volume low at the end of June has
    not translated into a sustained rally, and that is now of concern.

    The last two trading days could be a form of buyers absorbing sellers
    before rallying above resistance, but that has not been confirmed,
    obviously. Buyers are back on the defensive, and next week could be
    very informative.

    Keep buying and holding physical gold and silver for reasons unrelated
    to current prices, although current prices allow you to buy more for
    your fiat currency. What a deal! Stay away from the long side of the
    paper market. The number of profitable longs over the past almost
    two years is less than small. Always respect the trend, and use the
    knowledge if the charts to your advantage.

    SIU D 13 Jul 13

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